Pure Storage Announces Second Quarter Fiscal 2026 Financial Results

Q2 total revenue growth of 13%year-over-year

Storage as a Service Offerings TCV sales growth of 24%

Increases full-year revenue and operating profit guidance

Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, today announced financial results for its second quarter fiscal year 2026 ended August 3, 2025.

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“Our strong second quarter results demonstrate ever more customers' confidence in the value of the Pure Storage platform to advance their data storage and management now and into the future,” said Pure Storage CEO and Chairman Charles Giancarlo. “Today, enterprise applications are stuck in inflexible legacy systems that lock data in silos. With Purity and Pure Fusion, customers virtualize their storage to create their own Enterprise Data Cloud to unlock their data for business value.”

SecondQuarter Financial Highlights

— Revenue $861.0 million, up 13% year-over-year

— Subscription services revenue $414.7 million, up 15% year-over-year

— Subscription annual recurring revenue (ARR) $1.8 billion, up 18% year-over-year

— Remaining performance obligations (RPO) $2.8 billion, up 22% year-over-year

— GAAP gross margin 70.2%; non-GAAP gross margin 72.1%

— GAAP operating income $4.9 million; non-GAAP operating income $130.0 million

— GAAP operating margin 0.6%; non-GAAP operating margin 15.1%

— Operating cash flow $212.2 million; free cash flow $150.1 million

— Total cash, cash equivalents, and marketable securities $1.5 billion

— Returned approximately $42 million to stockholders through share repurchases of 0.8 million shares.

“Pure Storage exceeded both its revenue and operating profit guidance in the second quarter, reflecting strong customer adoption of our platform strategy,” said Pure Storage CFO Tarek Robbiati. “Looking ahead, we remain committed to executing on our strategic priorities to drive profitable growth and maintaining the flexibility to navigate evolving market conditions.”

SecondQuarter Company Highlights

— A New Architectural Approach for Data & Storage Management

— Introduced theEnterprise Data Cloud (EDC), an industry-changing architecture that transforms how organizations store and manage their data. Enabled by Pure Fusion, EDC sets a new standard for simplicity in intelligent and autonomous data and storage management, enabling organizations to prioritize business outcomes by abstracting away infrastructure.

— Accelerating Innovation with Next-Generation Products

— Expanded Pure Storage's portfolio withnext-gen storage products, including FlashArray//XL, FlashArray//ST, and FlashBlade//S, built to support high-performance and scalable workloads across diverse enterprise use cases and offering unified block, file, and object storage capabilities.

— Enhancing Efficiency and Resilience

— LaunchedPortworx for KubeVirt, a virtualization-centric storage solution for Kubernetes, enabling more cost-effective and simplified management of VM workloads using Red Hat OpenShift Virtualization Engine.

— Industry Recognition & Accolades

— Listed in Fortune'sBest Workplaces in the Bay Area™ 2025 and 25 Best Large Workplaces in the Bay Area.

— Named one of America's Greatest Workplaces 2025 byNewsweek.

— Recognized as part ofDBTA's 100 2025: The Companies That Matter Most in Data.

— Recognized as part ofCRN's Top 25 IT Innovators of 2025.

— Won Gold for Best Certification Program byBrandon Hall HCM Excellence Awards: “Pure Storage's IT Professional Certifications: Beyond the Badge”.

Third Quarter and FY26 Guidance

Q3FY26Revenue $950M to $960MRevenue YoY Growth Rate 14.3% to 15.5%Non-GAAP Operating Income $185M to $195MNon-GAAP Operating Income YoY Growth Rate 10.6% to 16.6%FY26 Prior Guidance New GuidanceRevenue $3.515B $3.60B to $3.63BRevenue YoY Growth Rate 11% 13.5% to 14.5%Non-GAAP Operating Income $595M $605M to $625MNon-GAAP Operating Income YoY Growth Rate 6% 8.2% to 11.7%

These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating income year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure's control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.

Conference Call Information

Pure will host a teleconference to discuss the second quarter fiscal 2026 results at 2:00 pm PT today, August 27, 2025. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.

A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.

Additionally, Pure is scheduled to participate in a:

Product & Technology-Focused Meeting for Financial Analysts at Pure//Accelerate NYC Date: Thursday, September 25, 2025

Register for Pure//Accelerate® 2025 and rethink what is possible. Join us on Thursday, September 25, 2025, in New York City as we make history and shape the future of storage and the industry. Hear from Pure Storage executives, including CEO Charles Giancarlo, and other world-leading experts as they share insights, strategies, and their vision for what's ahead.

Accelerate Registration

The financial analyst meeting presentation will be webcast live and archived on the Pure Storage Investor Relations website at investor.purestorage.com.

About Pure Storage

Pure Storage (NYSE: PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage as-a-Service platform across on premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business – always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with Pure Storage, which is why we've received one of the highest Net Promoter Scores in the industry across the years. For more information, visitwww.purestorage.com.

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Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Trademark List can be found at purestorage.com/trademarks. Other names may be trademarks of their respective owners.

Forward Looking Statements

This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance and price requirements, our ability to expand with our current hyperscale customer and to land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers, the timing and amount of revenue from hyperscaler licensing and support services, future period financial and business results, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure Fusion™), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, currency fluctuations, tariffs, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new technology investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.

Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. All information provided in this release and in the attachments is as of August 27, 2025, and Pure undertakes no duty to update this information unless required by law.

Key Performance Metrics

Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.

Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense,payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, costs associated with the impairment and early exit of certain leased facilities, and unrealized gains and losses from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by operating activities to free cash flow,” included at the end of this release.

PURE STORAGE, INC.Condensed Consolidated Balance Sheets(in thousands, unaudited) At the End of Second Quarter of Fiscal 2025 Fiscal 2026AssetsCurrent assets:Cash and cash equivalents $ 887,849 $ 723,583Marketable securities 649,661 798,237Accounts receivable, net of allowance of $509 and $940 530,481 680,862Inventory 46,812 42,810Deferred commissions, current 104,795 99,286Prepaid expenses and other current assets 305,140 222,501Total current assets 2,524,738 2,567,279Property and equipment, net 544,119 461,731Operating lease right-of-use-assets 191,202 146,655Deferred commissions, non-current 235,220 229,334Intangible assets, net 11,143 19,074Goodwill 361,427 361,427Restricted cash 19,770 12,553Other assets, non-current 138,918 165,889Total assets $ 4,026,537 $ 3,963,942Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable $ 112,162 $ 112,385Accrued compensation and benefits 212,869 230,040Accrued expenses and other liabilities 156,720 156,791Operating lease liabilities, current 46,460 43,489Deferred revenue, current 1,006,197 953,836Debt, current – 100,000Total current liabilities 1,534,408 1,596,541Operating lease liabilities, non-current 176,253 137,277Deferred revenue, non-current 904,867 841,467Other liabilities, non-current 92,188 82,182Total liabilities 2,707,716 2,657,467Stockholders' equity:Common stock and additional paid-in capital 2,652,794 2,674,533Accumulated other comprehensive income 1,916 954Accumulated deficit (1,335,889) (1,369,012)Total stockholders' equity 1,318,821 1,306,475Total liabilities and stockholders' equity $ 4,026,537 $ 3,963,942PURE STORAGE, INC.Condensed Consolidated Statements of Operations(in thousands, except per share data, unaudited) SecondQuarter of Fiscal First Two Quarters of Fiscal 2026 2025 2026 2025Revenue:Product $ 446,303 $ 402,595 $ 818,447 $ 749,979Subscription services 414,699 361,176 821,040 707,271Total revenue 861,002 763,771 1,639,487 1,457,250Cost of revenue:Product (1) 150,296 129,723 291,346 230,476Subscription services (1) 106,370 93,968 207,652 190,988Total cost of revenue 256,666 223,691 498,998 421,464Gross profit 604,336 540,080 1,140,489 1,035,786Operating expenses:Research and development (1) 242,026 195,490 463,766 389,310Sales and marketing (1) 285,890 250,267 564,402 501,239General and administrative (1) 71,549 69,445 138,621 146,232Restructuring and impairment (2) – – – 15,901Total operating expenses 599,465 515,202 1,166,789 1,052,682Income (loss) from operations 4,871 24,878 (26,300) (16,896)Other income (expense), net 45,700 19,437 77,355 33,528Income before provision for income taxes 50,571 44,315 51,055 16,632Income tax provision 3,453 8,641 17,932 15,967Net income $ 47,118 $ 35,674 $ 33,123 $ 665Net income per share attributable to common stockholders, basic $ 0.14 $ 0.11 $ 0.10 $ 0.00Net income per share attributable to common stockholders, diluted $ 0.14 $ 0.10 $ 0.10 $ 0.00Weighted-average shares used in computing net income per share attributable to common stockholders, basic 327,594 326,326 327,066 324,458Weighted-average shares used in computing net income per share attributable to common stockholders, diluted 337,734 343,443 337,306 341,509(1) Includes stock-based compensation expense as follows:Cost of revenue — product $ 4,149 $ 3,445 $ 7,415 $ 6,227Cost of revenue — subscription services 8,559 7,961 15,721 16,832Research and development 60,354 50,869 109,596 101,163Sales and marketing 26,527 24,418 48,611 47,937General and administrative 17,804 18,197 32,325 45,725Total stock-based compensation expense $ 117,393 $ 104,890 $ 213,668 $ 217,884(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.PURE STORAGE, INC.Condensed Consolidated Statements of Cash Flows(in thousands, unaudited) Second Quarter of Fiscal First Two Quarters of Fiscal 2026 2025 2026 2025Cash flows from operating activitiesNet income $ 47,118 $ 35,674 $ 33,123 $ 665Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 35,927 35,884 69,697 69,827Stock-based compensation expense 117,393 104,890 213,668 217,884Noncash portion of lease impairment and abandonment – – – 3,270Unrealized gain on strategic investment (27,966) – (30,401) -Other 3,887 1,120 7,027 2,726Changes in operating assets and liabilities:Accounts receivable, net (119,161) 6,953 150,381 245,721Inventory (14,937) (4,956) (12,268) (6,661)Deferred commissions (7,738) (1,554) (11,395) 6,153Prepaid expenses and other assets (13,961) (17,787) (33,401) (27,006)Operating lease right-of-use assets 11,561 8,406 19,958 16,528Accounts payable 23,845 13,423 (3,146) (13,158)Accrued compensation and other liabilities 84,945 30,392 602 (78,732)Operating lease liabilities (12,275) (8,031) (23,513) (18,257)Deferred revenue 83,519 22,183 115,761 29,137Net cash provided by operating activities 212,157 226,597 496,093 448,097Cash flows from investing activitiesPurchases of property and equipment (1) (62,027) (60,035) (134,373) (108,853)Purchase of strategic investments – (1,081) – (6,081)Purchases of marketable securities and other (141,232) (104,247) (256,128) (264,370)Sales of marketable securities 252,780 10,735 270,987 48,424Maturities of marketable securities 80,254 70,127 137,507 197,984Net cash provided by (used in) investing activities 129,775 (84,501) 17,993 (132,896)Cash flows from financing activitiesProceeds from exercise of stock options 8,099 4,545 13,458 17,768Proceeds from issuance of common stock under employee stock purchase plan – – 27,240 25,328Payments of deferred financing costs for revolving credit facility (2,080) – (2,080) -Principal payments on borrowings and finance lease obligations (100,000) (2,836) (101,125) (3,935)Tax withholding on vesting of equity awards (56,161) (74,208) (117,461) (86,686)Repurchases of common stock (42,242) – (162,178) -Net cash used in financing activities (192,384) (72,499) (342,146) (47,525)Net increase in cash, cash equivalents and restricted cash 149,548 69,597 171,940 267,676Cash, cash equivalents and restricted cash, beginning of period 760,142 910,210 737,750 712,131Cash, cash equivalents and restricted cash, end of period $ 909,690 $ 979,807 $ 909,690 $ 979,807(1) Includes capitalized internal-use software costs of $8.7 million and $5.3 million for the second quarter of fiscal 2026 and 2025 and $15.6 million and $9.8 million for the first two quarters of fiscal 2026 and 2025.Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measuresThe following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited): SecondQuarter of Fiscal 2026 SecondQuarter of Fiscal 2025 GAAP GAAP Adjustment Non- Non- GAAP GAAP Adjustment Non- Non- results gross GAAP GAAP results gross GAAP GAAP margin (a) results gross margin (a) results gross margin (b) margin (b) $ 4,149 (c) $ 3,445 (c) 127 (d) 224 (d) 3,306 (e) 3,306 (e)Gross profit –product $ 296,007 66.3% $ 7,582 $ 303,589 68.0% $ 272,872 67.8% $ 6,975 $ 279,847 69.5% $ 8,559 (c) $ 7,961 (c) 466 (d) 658 (d)Gross profit — $ 308,329 74.4% $ 9,025 $ 317,354 76.5% $ 267,208 74.0% $ 8,619 $ 275,827 76.4%subscription services $ 12,708 (c) $ 11,406 (c) 593 (d) 882 (d) 3,306 (e) 3,306 (e)Total gross profit $ 604,336 70.2% $ 16,607 $ 620,943 72.1% $ 540,080 70.7% $ 15,594 $ 555,674 72.8%(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.(c) To eliminate stock-based compensation expense.(d) To eliminate payroll tax expense related to stock-based activities.(e) To eliminate amortization expense of acquired intangible assets.The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited): SecondQuarter of Fiscal 2026 SecondQuarter of Fiscal 2025 GAAP GAAP Adjustment Non- Non- GAAP GAAP Adjustment Non- Non- results operating GAAP GAAP results operating GAAP GAAP margin (a) results operating margin (a) results operating margin (b) margin (b) $ 117,393 (c) $ 104,890 (c) 4,164 (d) 5,292 (d) 3,536 (e) 3,536 (e)Operating income $ 4,871 0.6% $ 125,093 $ 129,964 15.1% $ 24,878 3.3% $ 113,718 $ 138,596 18.1% $ 117,393 (c) $ 104,890 (c) 4,164 (d) 5,292 (d) 3,536 (e) 3,536 (e) 230 (f) 153 (f) (27,966) (g) -Net income $ 47,118 $ 97,357 $ 144,475 $ 35,674 $ 113,871 $ 149,545Net income per share — diluted $ 0.14 $ 0.43 $ 0.10 $ 0.44Weighted- 337,734 – 337,734 343,443 – 343,443averageshares used inper sharecalculation –diluted(a) GAAP operating margin is defined as GAAP operating income divided by revenue.(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.(c) To eliminate stock-based compensation expense.(d) To eliminate payroll tax expense related to stock-based activities.(e) To eliminate amortization expense of acquired intangible assets.(f) To eliminate amortization expense of debt issuance costs related to our debt.(g) To eliminate unrealized gain from mark-to-market adjustment on strategic investment.Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited): SecondQuarter of Fiscal 2026 2025Net cash provided by operating activities $ 212,157 $ 226,597Less: purchases of property and equipment (1) (62,027) (60,035)Free cash flow (non-GAAP) $ 150,130 $ 166,562(1) Includes capitalized internal-use software costs of $8.7 million and $5.3 million for the second quarter of fiscal 2026 and 2025.

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